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ED Uncovers Rs 1,000 Crore Liquor Scam Involving Distilleries, and Bottle Makers
Chennai: The Enforcement Directorate (ED) has uncovered a massive Rs 1,000 crore scam involving distilleries supplying liquor to the Tamil Nadu State Marketing Corporation Ltd (Tasmac). According to the ED, these distilleries, in collusion with bottle-making companies, inflated expenses and engaged in bogus purchases to siphon off funds, which were then paid as kickbacks to Tasmac officials to secure more supply orders.
Widespread Raids and Evidence of Fraud
ED officials conducted four-day searches starting March 6 at various locations, including Tasmac’s head office, depots, distilleries, and corporate offices of key players such as SNJ, Kals, Accord, SAIFL, and Shiva Distillery. Searches were also carried out at premises linked to at least two individuals.
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In a press release on Thursday, the ED revealed that bottle-making firms like Devi Bottles, Crystal Bottles, and GLR Holding inflated sales figures, allowing distilleries to route excess payments through them. These funds were later withdrawn in cash and returned after deducting commissions. Manipulated financial records concealed these illicit cash flows and facilitated systematic tax evasion.
Manipulation in Tenders and Licences
ED investigations also exposed manipulation in transport and bar licence tenders related to Tasmac. The liquor corporation, which pays Rs 100 crore annually to transporters, awarded contracts despite receiving only one final bid, raising concerns over lack of competition. Moreover, ED suspects that the winning bidder failed to secure the requisite demand draft before the application deadline.
Similarly, bar licences were granted to applicants without GST numbers or PAN, pointing to further irregularities.
Scam Dates Back to 2016-2021
The searches were prompted by First Information Reports (FIRs) filed by the Directorate of Vigilance and Anti-Corruption (DVAC) between 2016 and 2021. These FIRs detailed allegations such as:
- Tasmac outlets overcharging customers above the MRP
- Distilleries offering bribes to Tasmac officials to secure supply orders
- Senior Tasmac officials demanding bribes for retail operations and staff transfers
Investigation Expands
While the ED has not specified the exact timeframe of the scam, it confirmed that it is probing the roles of Tasmac officials, distillery employees, and bottle-making companies involved in these illicit activities. The investigation is ongoing, with more revelations expected in the coming weeks.